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NDFA on the brink of administration

Structured product provider NDF Administration is likely to be placed into administration this week, Money Marketing understands.

The FSA is expected to conclude that the firm is liable for losses on its Lehman-backed structured products. The firm has over £30m of investors’ money in Lehman-backed plans.

It is understood that Grant Thornton is likely to be app-ointed as an administrator.

Last month, the FSA announced it would be taking action against firms involved with structured products backed by the defunct bank Lehman Brothers.

It is due to report back on the outcomes of its wider review of structured products later this month but it has given the Ombudsman the go-ahead to review individual complaints relating to the products.

Structured products from NDFA, DRL, Meteor, Arc and Legal & General are among those affected by Lehman’s collapse.

In September, the Financial Ombudsman Service said it has received 160 complaints but it is estimated that £200m was invested by around 6,000 people in Lehman-backed savings products.

The FSA would not comment on individual firms.

A senior source within the company, who did not want to be named, admitted that the firm was likely to go into administration this week due to the FSA action.

A spokesman for NDFA ref-used to comment.

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